Global Corp. expects sales to grow by 6% next year. Assume that Global pays out 50% of its net income. Using the percent of sales method and the data provided in the following statements LOADING... , forecast stockholders' equity. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Net Sales 185.6 Costs Except Depreciation -174.3 EBITDA 11.3 Depreciation and Amortization -1.1 EBIT 10.2 Interest Income (expense) -$7.7 Pretax Income 2.5 Taxes -0.7 Net Income 1.8 Balance Sheet Assets Cash 22.6 Accounts Receivable 18.2 Inventories 15.3 Total Current Assets 56.1 Property, Plant and Equipment 113.6 Total Assets 169.7 Liabilities and Equity Accounts Payable 34.9 Long-term Debt 113.7 Total Liabilities 148.6 Total Stockholders' Equity 21.1 Total Liabilities and Equity 169.7
Global Corp. expects sales to grow by 6% next year. Assume that Global pays out 50% of its net income. Using the percent of sales method and the data provided in the following statements LOADING... , forecast stockholders' equity. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. Income Statement Net Sales 185.6 Costs Except Depreciation -174.3 EBITDA 11.3 Depreciation and Amortization -1.1 EBIT 10.2 Interest Income (expense) -$7.7 Pretax Income 2.5 Taxes -0.7 Net Income 1.8 Balance Sheet Assets Cash 22.6 Accounts Receivable 18.2 Inventories 15.3 Total Current Assets 56.1 Property, Plant and Equipment 113.6 Total Assets 169.7 Liabilities and Equity Accounts Payable 34.9 Long-term Debt 113.7 Total Liabilities 148.6 Total Stockholders' Equity 21.1 Total Liabilities and Equity 169.7
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 7P
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Part 1
Global Corp. expects sales to grow by
forecast stockholders' equity .
6%
next year. Assume that Global pays out
50%
of its net income. Using the percent of sales method and the data provided in the following statements
LOADING...
,The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.
Income Statement
Net Sales 185.6
Costs Except Depreciation -174.3
EBITDA 11.3
Depreciation and Amortization -1.1
EBIT 10.2
Interest Income (expense) -$7.7
Pretax Income 2.5
Taxes -0.7
Net Income 1.8
Net Sales 185.6
Costs Except Depreciation -174.3
EBITDA 11.3
Depreciation and Amortization -1.1
EBIT 10.2
Interest Income (expense) -$7.7
Pretax Income 2.5
Taxes -0.7
Net Income 1.8
Assets
Cash 22.6
Accounts Receivable 18.2
Inventories 15.3
Total Current Assets 56.1
Property, Plant and Equipment 113.6
Total Assets 169.7
Liabilities and Equity
Accounts Payable 34.9
Long-term Debt 113.7
Total Liabilities 148.6
Total Stockholders' Equity 21.1
Total Liabilities and Equity 169.7
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